Oil prices fall as US delays decision on direct Iran involvement
Brent crude futures fell $2, or 2.5%, to $76.85 a barrel by 0648 GMT but still looked set to gain more than 3% on the week.
U.S. West Texas Intermediate crude for July - which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was down 14 cents, or 0.2%, to $75.
The more liquid August contract was up 0.3%, or 19 cents, to $73.69.
On Thursday prices jumped almost 3% after Israel bombed nuclear targets in Iran and Iran fired missiles and drones at Israel. The week-old war between Israel and Iran showed no signs of either side backing down.
Iran is OPEC's third-largest producer.
Brent futures trimmed previous session gains following the White House's comments that President Donald Trump would decide whether the U.S. will get involved in the Israel-Iran conflict in the next two weeks.
"Oil prices surged amid fears of increased U.S. involvement in Israel's conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation," said Phil Flynn, analyst at The Price Futures Group.
"The "two-week deadline" is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action,.. which would see the crude oil price remain elevated and potentially build on recent gains," said Tony Sycamore, analyst at IG.
Emril Jamil, oil research analyst at LSEG, said the "unwavering determination" of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to increase output "may have added jitters to the market". - Reuters
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The Star
7 hours ago
- The Star
Trump tariffs leave costly China supply question unanswered; Indonesia among countries deeply affected
JAKARTA (Bloomberg): President Donald Trump's recent flurry of trade deals have given Asian exporters some clarity on tariffs, but missing are key details on how to avoid punitive rates that target China's supply chains. Trump unveiled tariffs of 20% for Vietnam and 19% for Indonesia and the Philippines, signaling those are the levels the US will likely settle on for most of Southeast Asia, a region that ships US$352 billion worth of goods annually to the US. He's also threatened to rocket rates up to 40% for products deemed to be transshipped, or re-routed, through those countries - a move largely directed at curbing Chinese goods circumventing higher US tariffs. But still unclear to manufacturers is how the US will calculate and apply local-content requirements, key to how it will determine what constitutes transshipped goods. South-East Asian nations are highly reliant on Chinese components and raw materials, and US firms that source from the region would bear the extra tariff damage. That's left companies, investors and economists facing several unanswered questions about Trump's tariffs that appear aimed at squeezing out Chinese content, according to Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. "Is that raw materials? All raw materials? Above a certain percentage?' she said. "How about parts? What about labor or services? What about investment?' In an agreement with Indonesia last week, the White House said the two countries would negotiate "rules of origin' to ensure a third country wouldn't benefit. The deal with Vietnam earlier this month outlined a higher 40% tariff rate for transshipped goods. And Thai officials, who have yet to secure a deal, detailed that they likely need to boost local content in exports to the US. Missing Details The Trump administration isn't providing much clarity on the matter right now. US officials are still working out details with trading partners and looking at value-based local content requirements, to ensure exports are more than just assembled imported parts, according to a person familiar with the matter, who didn't want to be identified discussing private talks. A senior Trump administration official also said this week that details on the approach to transshipment are expected to be released before Aug. 1, the deadline for when higher US tariffs kick in. Some factories are already adjusting their supply chains to comply with rules that will require more locally-made components in production. Frank Deng, an executive at a Shanghai-based furniture exporter with operations in Vietnam - and which gets about 80% of business from the US - said in an interview his firm is making adjustments as authorities appear to be more strictly enforcing country-of-origin rules. Vietnam has always had specific local content requirements for manufacturers, Deng added, including that a maximum of 30% of the volume of raw materials originates from China, and the value after production in Vietnam must be 40% higher than the imported raw materials. "We've been struggling to meet all the standards so that we can still stay in the game,' Deng said. "But I guess that's the only way to survive now.' For most of Southeast Asia, reducing the amount of Chinese-made components in manufacturing will require a complete overhaul of their supply chains. Estimates from Eurasia Group show that Chinese components make up about 60% to 70% of exports from Southeast Asia - primarily industrial inputs that go into manufacturing assembly. About 15% of the region's exports now head to the US, up about four percentage points from 2018. Local Content The US has become increasingly vigilant about China's ability to bypass US trade tariffs and other restrictions through third countries since Trump's first trade war in 2017. Thailand signaled its frustration over the lack of clarity for how much local content is needed in goods exported to the US to avert transshipment rates, but noted it will likely be much higher than a traditional measure of 40%. "From what we've heard, the required percentage could be significantly higher, perhaps 60%, 70%, or even 80%,' Deputy Prime Minister Pichai Chunhavajira said July 14. "Emerging countries or new production bases are clearly at a disadvantage,' he said, as their manufacturing capabilities are still at an early stage and must rely on other countries for raw goods. Vietnam, Thailand and Malaysia have all taken steps this year to address Trump's concerns, increasing scrutiny of trade that passes through their ports including new rule-of-origin policies that centralize processing and imposing harsh penalties on transshippers. Developing nations may still struggle to enforce Trump's rules or comply with the rules if it means going up against China, their largest trading partner and geopolitical partner. "The reality is it's not enforceable at all,' said Dan Wang, China director at Eurasia Group. "Chinese companies have all kinds of ways to get around it and those other countries have no incentive to enforce those measures, or capacity to collect the data and determine local content.' -- Reports from Patpicha Tanakasempipat, Skylar Woodhouse and Nguyen Dieu Tu Uyen. -- ©2025 Bloomberg L.P.
Malay Mail
9 hours ago
- Malay Mail
Trump's ‘fake news' diversion tactics falter as Epstein uproar grows
WASHINGTON, July 26 — President Donald Trump's super powers as a public figure have long included the ability to redirect, evade and deny. But the Republican's well-worn methods of changing the subject when a tough topic stings politically are not working as his White House fends off persistent unrest from his usually loyal base about convicted sex offender Jeffrey Epstein and his associates. Trump has scolded reporters, claimed ignorance and offered distractions in an effort to quash questions about Epstein and the suspicions still swirling around the disgraced financier's case years after his 2019 death in prison. The demand for answers has only grown. 'For a president and an administration that's very good at controlling a narrative, this is one that's been harder,' said Republican strategist Erin Maguire, a former Trump campaign spokeswoman. Unlike political crises that dogged Trump's first term, including two impeachments and a probe into alleged campaign collusion with Russia, the people propelling the push for more transparency on Epstein have largely been his supporters, not his political foes. Trump has fed his base with conspiracy theories for years, including the false 'birther' claim that former President Barack Obama was not born in the United States. Trump's advisers fanned conspiracies about Epstein, too, only to declare them moot upon entering office. That has not gone over well with the president's right-leaning base, which has long believed the government was covering up Epstein's ties to the rich and powerful. 'Donald Trump's been running a Ponzi scheme based on propaganda for the better part of a decade and it's finally catching up to him,' said Geoff Duncan, a Republican former lieutenant governor of Georgia and Trump critic. 'The far right element is just dug in. They're hell bent on getting this information out.' The White House has dismissed reporting about Trump's ties to Epstein as 'fake news,' though it has acknowledged his name appears in documents related to the Epstein case. Trump and Epstein were friends for years before falling out. 'The only people who can't seem to shake this story from their one-track minds are the media and Democrats,' said White House spokesman Harrison Fields. Before leaving for a trip to Scotland yesterday, the president again urged people to turn their attention elsewhere. 'People should really focus on how well the country is doing,' Trump told reporters, lamenting that scrutiny was not being given to others in Epstein's orbit. 'They don't talk about them, they talk about me. I have nothing to do with the guy.' A person takes a photo as a message calling on President Donald Trump to release all files related to Jeffrey Epstein is projected onto the US Chamber of Commerce building across from the White House in Washington, DC July 18, 2025. — AFP pic The art of distraction Trump in recent weeks has employed a typical diversion playbook. He chastised a reporter for asking about Epstein in the White House Cabinet Room. He claimed in the Oval Office that he was not paying close attention to the issue. And, with help from Tulsi Gabbard, his director of national intelligence, he explosively accused Obama of treason for how he treated intelligence in 2016 about Russian interference in the US election. On Thursday, Trump took his distraction tour to the Federal Reserve, where he tussled with Chair Jerome Powell about construction costs and pressed for lower interest rates. That, said Republican strategist Brad Todd, was more effective than focusing on Obama in 2016, which voters had already litigated by putting Trump back in office. 'The Tulsi Gabbard look backward, I think, is not the way for them to pivot,' Todd said, noting that Trump's trip to the Fed highlighted the issue of economic affordability and taking on a Washington institution. 'If I was him I'd go to the Fed every day until rates are cut.' Democrats have seized on Trump's efforts to move on, sensing a political weakness for the president and divisions in the Republican Party that they can exploit while their own political stock is low in the wake of last year's drubbing at the polls. A Reuters/Ipsos poll this month showed most Americans think Trump's administration is hiding information about Epstein, creating an opportunity for Democrats to press. Trump's supporters and many Democrats are eager to see a release of government files related to Epstein and his case, which the Justice Department initially promised to deliver. 'Yesterday was another example of the Trump folks trying to throw as much stuff against the wall to avoid the Epstein files,' Mark Warner, a Democratic US senator from Virginia, said in a post on X on Thursday about Gabbard's accusations against Obama. Trump allies see the administration's efforts to change topic as a normal part of an all-out-there strategy. 'They are always going at 100 miles an hour. Every department, every cabinet secretary, everybody is out there at full speed blanketing the area with news,' Republican strategist Maguire said. Trump has weathered tougher periods before, and his conservative base, despite its frustration over the files, is largely pleased with Trump's work on immigration and the economy. In a July Reuters/Ipsos poll, 56 per cent of Republican respondents favoured the administration's immigration workplace raids, while 24 per cent were opposed and 20 per cent unsure. Pollster Frank Luntz noted that Trump had faced felony convictions and other criminal charges but still won re-election last year. 'We've been in this very same situation several times before and he has escaped every time,' Luntz said. — Reuters
Borneo Post
10 hours ago
- Borneo Post
Death toll rises in Thai-Cambodian clashes despite ceasefire call
People who fled their homes near the border between Cambodia and Thailand, gather to get some food at a pagoda in Oddar Meanchey province on July 26, 2025. – AFP photo SAMRAONG (July 26): Thailand and Cambodia clashed for a third day today, as the death toll from their bloodiest fighting in years rose to 33 and Phnom Penh called for an 'immediate ceasefire'. A long-running border dispute erupted into intense conflict involving jets, artillery, tanks and ground troops on Thursday, prompting the UN Security Council to hold an emergency meeting on the crisis Friday. AFP journalists in the Cambodian town of Samraong, near the border that has seen the bulk of the fighting, heard the thump of artillery early this afternoon. A Thai villager reached by phone as he sheltered in a bunker in Sisaket province, just 10 kilometres from the frontier, also reported hearing artillery. 'I just want this to end as soon as possible,' Sutian Phiewchan told AFP. Tensions initially flared over long-contested ancient temple sites, but fighting has spread along the neighbours' rural frontier region, marked by a ridge of forest-clad hills surrounded by wild jungle and agricultural land where locals farm rubber and rice. Both sides reported a clash on the coastline about 250 kilometres southwest of the main front lines at around 5am today (2200 GMT Friday), with Cambodia accusing Thai forces of firing 'five heavy artillery shells' into locations in Pursat province, which borders Thailand's Trat province. Cambodia's defence ministry said 13 people have been confirmed killed in the fighting since Thursday, including eight civilians and five soldiers, with 71 people wounded. Thai authorities say 13 civilians and seven soldiers have been killed on their side, taking the toll across both nations higher than it was in the last major round of fighting between 2008 and 2011. The conflict has also forced more than 138,000 people to be evacuated from Thailand's border regions, with more than 35,000 driven from their homes in Cambodia. After the closed meeting of the Security Council in New York, Cambodia's UN ambassador Chhea Keo said his country wanted a ceasefire. 'Cambodia asked for an immediate ceasefire — unconditionally — and we also call for the peaceful solution of the dispute,' he told reporters. Border row Thai Foreign Minister Maris Sangiampongsa said today that for any ceasefire or talks to proceed, Cambodia needed to show 'genuine sincerity in ending the conflict'. 'I urge Cambodia to stop violating Thai sovereignty and to return to resolving the issue through bilateral dialogue,' Maris told reporters. Thai Foreign Ministry spokesman Nikorndej Balankura said Friday, before the UN meeting was held, that Bangkok was open to talks, possibly aided by Malaysia. Malaysia currently holds the chair of the Asean regional bloc, of which Thailand and Cambodia are both members. Both sides have blamed the other for firing first. And Cambodia has accused Thai forces of using cluster munitions, while Thailand accused Cambodia of targeting civilian infrastructure, including a hospital hit by shells and a petrol station struck by at least one rocket. Former Thai prime minister Thaksin Shinawatra — still an influential figure in the kingdom — visited shelters today to meet evacuees. 'The military needs to complete its operations before any dialogue can take place,' Thaksin told reporters. The 76-year-old said he had no plans to contact Hun Sen, Cambodia's powerful ex-prime minister who was long a close ally. 'His actions reflect a disturbed mindset. He should reflect on his conduct,' Thaksin said of Hun Sen. The fighting marks a dramatic escalation in a long-running dispute between the neighbours — both popular destinations for millions of foreign tourists — over their shared 800-kilometre border. Dozens of kilometres in several areas are contested and fighting broke out between 2008 and 2011, leaving at least 28 people dead and tens of thousands displaced. A UN court ruling in 2013 settled the matter for more than a decade, but the current crisis erupted in May when a Cambodian soldier was killed in a clash on the border. Relations between the two countries soured dramatically when Hun Sen last month released a recording of a call with Thai Prime Minister Paetongtarn Shinawatra focused on the border row. The leak triggered a political crisis in Thailand as Paetongtarn — Thaksin's daughter — was accused of not standing up for Thailand enough, and of criticising her own army. She was suspended from office by a court order. – AFP cambodia clash Thailand war
